Economy

Sri Lanka’s central bank expects economy to grow by 4.5% in 2025

Published

6 months ago

August 16, 2025

Sri Lanka’s economy will grow by 4.5% this year, the central bank said in a monetary policy report on Friday, despite some risks to the island nation’s recovery from U.S. tariffs.

The central bank’s projection is above World Bank estimates of 3.5% growth for this year.

Underpinned by a $2.9 billion International Monetary Fund (IMF) programme, Sri Lanka’s gross domestic product grew by 5% in 2024, rebounding strongly from a severe financial crisis three years ago.

The central bank’s report did highlight some risks to the outlook.

“However, external demand conditions and evolving global economic landscape increase the level of uncertainty associated with growth prospects over the near to medium term,” it said.

Sri Lanka is continuing talks with the U.S. after it imposed 20% tariffs last month, reducing it from 44% in April.

Apparel, Sri Lanka’s second-largest foreign exchange earner, is particularly exposed — the sector exports 40% of its output to the U.S. and brought in $4.8 billion last year. It employs around 300,000 people, most of them women.

Inflation will continue to accelerate and reach the central bank’s target of 5% in mid 2026, the report added.

Sri Lanka’s consumer price index fell 0.3% in July, having tumbled from an inflation peak of 70% in September 2022, mainly due to a reduction of power tariffs and food prices.

The Central Bank of Sri Lanka (CBSL) held its benchmark interest rate unchanged at 7.75% last month after trimming it by 25 basis points in May.

Source – Adaderana

Economy

Sri Lanka records US$ 751.1 million in workers remittances in January 2026

Published

1 week ago

February 9, 2026

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Foreign worker remittances to Sri Lanka reached US$ 751.1 million in January 2026, marking a 31.1% rise from US$ 573.0 million in January 2025, the Central Bank of Sri Lanka (CBSL) said.

The robust start to 2026 comes after a record US$ 8.076 billion in total remittance inflows for 2025.

Economy

Nuwara Eliya Ranks Second on Agoda’s List of Must-Visit Hill Stations in Asia

Published

2 weeks ago

February 7, 2026

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Sri Lanka’s popular hill resort town Nuwara Eliya has been ranked second among Asia’s must-visit hill stations by digital travel platform Agoda, further strengthening the country’s appeal as a scenic travel destination.

Sri Lanka travel guide

Agoda featured Nuwara Eliya in a new travel list promoting highland destinations across Asia that offer cooler climates, natural beauty and peaceful surroundings for travellers seeking a break from busy city life.

Known as “Little England,” Nuwara Eliya attracts both local and foreign visitors with its tea plantations, colonial-era architecture, cool weather and scenic landscapes. Tourists frequently visit the area for its lakes, misty hills and opportunities for relaxation as well as outdoor activities.

Economy

Galle ranks fifth among top 10 honeymoon destinations for 2026

Published

4 weeks ago

January 20, 2026

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Galle has been placed fifth among the world’s top 10 honeymoon destinations for 2026 in the latest rankings released by Tripadvisor.

The ranking forms part of Tripadvisor’s Travelers’ Choice Awards Best of the Best 2026 and is based solely on the volume and quality of traveller reviews submitted over a 12-month period.

Tripadvisor said the list reflects destinations that consistently received strong feedback from honeymoon travellers worldwide.

Beach and island destinations dominate the upper end of the 2026 rankings. Bali secured the top position, followed by Mauritius and the Maldives, with St. Lucia ranked fourth. Galle placed fifth, ahead of several established long-haul honeymoon favourites.

Tripadvisor noted that Galle’s appeal lies in its blend of heritage and coastal experiences. Founded by the Portuguese in the 16th century, Galle Fort remains a key attraction, with preserved ramparts, historic buildings, and walkable streets.